Advisor Spotlight: Where to Find Value Now

Financial Advisor Gregg Fisher is encouraging clients to look overseas for the best opportunities in stocks and REITs.

This transcript has been automatically generated and may not be 100% accurate.

I ... investors may be best served by looking abroad ... on Jack Otter and her Barron's dot com on here with great Fisher who is chief investment officer of Gerstein Fisher Investment Advisors antipot great you run neutral funds Euromoney for individuals on the only basis ... I let's talk a little bit of a broadly how to construct portfolios and then specifically wary see some opportunities right now ... before we started he told me that ... even though bonds have been on a wonderful thirty year run even the stocks are little scary right now ... we think investors need to hold oh ... absolutely I think investors need to stay invested for the ultimate objectives have a long-term view ... that's not new ... but you know I know that investors are concerned with the interest rate environment and the fact that the stock market is something like a thousand points higher today than it was at the bottom of the financial crisis ... that we know that investors make choices about the future ... based on what happened to them yesterday in the recent past in the recent past know this up past performance does in fact influence our future choices ... in fact it probably shouldn't but we know that it does ... as a relates to bonds and interest rates ... the yield curve right now is incredibly steep so the market must be thinking that interest rates are going to rise ... and certainly if you've been asking anybody in the world today about what their view of interest rates are ... it's hard to find someone things that interest rates in the United States will be rising ... one of the observations we had recently Gerstein Fisher ... is that the three month T bill was that something like fifteen basis points ... in the five year Treasury bond was at about or is it about a hundred and fifty basis points ... that spread and that steepness is larger than it's been ... probably ever but certainly since the nineteen seventies ... and if you take the view that markets are doing a pretty good job pricing the future risks ... in fact we think staying short on the yield curve is important not going beyond five years because of the risk ... but on the other hand you might have a tilt toward the fiver for your bond first the three month T bill ... because it seems like investors would possibly be rewarded for that extra risk ... an extra hundred and forty basis points roughly for another three a half years on the yield curve seems like a good deal on a treasure ... and if rates were to rise dramatically figure still clearly see demand for five year duration have still only to be a little bit of volatility ... that are getting paid an extra hundred basis points while you're waiting for this volatility ... we have to remember that ... interest rates rising itself may not be what causes the volatility of its interest rates rising more than everyone expects them to rise that would cause the volatility ... he's quantitative analysis and in other ... ways of getting at valuations when he tells about stocks Renault were in DC opportunities we don't want to draw a diversified but anything your ear raising the profile of that well you know classics team around investing that goes back through the test of time is that we know that risk and return ... should be related ... maybe it doesn't work out that way everyday and every month but over time this is something we still believe makes us more grace more aware of that should be the concept ... at any rate what we look globally right now it's just the fact that as the U S investor the U S stock market has done much better than foreign markets for investors ... and I think that many investors now are under exposed to the foreign markets ... our markets represent approximately fifty percent of the worldwide market capitalization ... most investors we need are significantly less exposed than fifty percent of the foreign markets ... so I think investors could consider inching up on their foreign market exposure ... quickly when you look at the emerging markets and the developed world with the strength of the dollar and other things that have gone on globally foreign markets do look to me ... to be a place where people should remain invested and possibly increase their exposure for the long run ... and filing outside of stocks and bonds the field and many investors are underinvested in real estate ... hell lot of Barron's viewers are ... the owners of their primary residence probably a second home as well ... so I feel like a lot of exposure ... well you have to see your primary residence as something a little bit different than commercial real estate in Canada ... um there you know commercial real estate and residential real estate are different ... their sensitivities two economies are different now ... if an investor has a large percentage of their portfolio already in their home will ensure it maybe they would have less exposure to commercial real estate in their portfolio marketable securities ... but in general because of the real estate market not quite having caught up to the stock market since the correction a few years back ... I think most investors are under exposed to real estate and they might wanna consider inching up on it ... an easy way to do that would be through public Real Estate wreaths ... now when you look it reads globally ... there's a lot of access today to real estate in foreign markets and if you asked all of your friends ... on how much exposure they have to real estate in other countries ... I think what you find is the answer is almost nothing ... all the time ... so just the pure diversification point of view were a weak looking to build portfolios with assets that have differentiated movement ... and we would expect that real estate in other countries ... would be more different than stocks and bonds in the U S than stocks in other countries ... so from a portfolio perspective we think global real estate is something investors should take a serious look at ... and one more question Emirates on appears to have a love hate relationship with them ... on your lawn for a while obviously been hammered recently to see the opportunity then ... there is opportunity but it's actually not something that were looking at we prefer the direct exposure to the actual real estate itself as compared to mortgage rates great thanks so much thank you ... thank you for watching ...